Feeds

KPN to axe 1,750 jobs a year

Restructuring for a simpler IP world

  • alert
  • submit to reddit

Intelligent flash storage arrays

Dutch telecoms outfit KPN is to axe up to 1,750 jobs a year until 2010 as part of a major restructuring plan to cut costs and refocus its business on broadband and internet telephony.

Said chief exec Ad Scheepbouwer: "Starting in 2005, we intend to have a big push in broadband and VoIP. This will have consequences for short-term profitability, but will position us strongly for today's market and deliver greater benefits in the future."

Since the IP-world is "simpler and cheaper" it offers telcos the chance to achieve lower structural costs by using fewer people.

"We anticipate that annual reductions in headcount of between 1,500 and 1,750 employees will unfortunately be inevitable until 2010. All in all, we expect to realise annual cost savings of €850m from 2010 onwards," he said.

Today's bombshell about ongoing job losses comes as the Dutch giant announced a dip in revenues and a sharp fall in annual profits.

Operating revenues for the year fell from €12.9bn in 2003 to €12.1bn. Pre-tax profit fell to €1.84bn in 2004 from €2.25bn. ®

Related stories

KPN doubles profits on falling sales
15,000 jobs to go if Qwest/MCI gets green light
T-Mobile to axe 800 UK jobs
SBC to axe 13,000 jobs in AT&T merger

Providing a secure and efficient Helpdesk

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Will BlackBerry make a comeback with its SQUARE smartphones?
Plus PC PIMs from company formerly known as RIM
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.